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May

AAOIFI statement on COVID-19 accounting implications for Islamic financial institutions

22 May 2020

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has published a statement 'Accounting implications of the impact of COVID-19 pandemic'.

The objective of the statement is to provide clarifications to Islamic financial institutions for the application of AAOIFI financial accounting standards (FASs) and the AAOIFI's Conceptual Framework considering certain pertinent issues arising due to economic factors and regulatory interventions in the wake of the COVID-­19 pandemic. AAOIFI is of the view that the FASs are robust and flexible enough to address the challenges posed by the prevalent uncertainty in the environment, but emphasises that institutions are encouraged to provide additional disclosures on voluntary basis to enable the users of the financial statements to better understand the financial position and performance of the institutions.

Please click to access the statement on the AAOIFI website.

Agenda for the June 2020 ITCG meeting

14 May 2020

The agenda is available for the next meeting of the IFRS Taxonomy Consultative Group (ITCG), which will be held via video conference on 2 June 2020.

The agenda is sum­marised below:

Tuesday 2 June 2020 (11:00-16:00)

  • Review of common reporting practice related to the primary financial state­ments (stakeholder feedback, earnings per share, statement of financial performance)
  • Review of common reporting practice related to IAS 19 Employee Benefits
  • Upcoming IFRS Taxonomy consultation documents

Agenda papers for this meeting are available on the IASB website.

Agenda for the May 2020 IFRS Advisory Council meeting

01 May 2020

An agenda has been released for the upcoming meeting of the IFRS Advisory Council, which was originally scheduled for March 2020 and will now be held by remote participation on 27 and 28 May 2020.

A summary of the agenda is set out below:

Wednesday 27 May 2020 (12:00-15:00)

  • Update on Trustees and Foundation Activities
  • Chairman’s preview
  • Monitoring adoption (panel discussion and general discussion)
  • Customer’s digital experience (introduction and discussion)

Thursday 28 May 2020 (12:00-14:15)

  • Update on the Board’s activities
  • KPIs Board’s activities (introduction and discussion)
  • Focus on the Advisory Council
  • Summing up of the meeting

Agenda papers for the meeting are available on the IASB website.

Collections of COVID-19 resources

08 May 2020

Global responses to the coronavirus disease 2019 (COVID-19) outbreak continue to rapidly evolve. Numerous publications and announcements of developments have sprung up around the world. Since it has become more and more difficult to follow all of them, we have put together a meta-collection of collections that we found helpful and worth browsing.

Please note that the collections do in part overlap - especially the IASB statements on IFRS 9 and IFRS 16 are included in almost all of them. Please be also aware that these collections will continue to be updated throughout the crisis. This page was last updated on 22 May 2020.

Organisation Collection link Main focus

I n t e r n a t i o n a l

International Federation of Accountants (IFAC) COVID-19 Resources from IFAC's Network global
Global Public Policy Committe (GPPC) Government/regulator response to impact of coronavirus on reporting and audit matter global, regulatory
International Auditing and Assurance Standards Board (IAASB) Guidance for Auditors During the Coronavirus Pandemic global, audit
Association of Chartered Certified Accountants (ACCA) Coronavirus – Information and resources accountants in practice and in business, students
Financial Stability Board (FSB)
Addressing financial stability risks of COVID-19 global, financial stability
Organisation for Economic Co-operation and Development (OECD) Tackling coronavirus (COVID‑19) impacts of the coronavirus pandemic on lives and societies in general

R e g i o n a l

Accountancy Europe Coronavirus resources for European accountants Europe, general
Accountancy Europe Coronavirus crisis resources – Banks Europe, banks
Accountancy Europe Coronavirus crisis: country responses to the implications on reporting local European
European Securities and Markets Authority (ESMA) COVID-19 Europe
European Federation of Accountants and Auditors for SMEs (EFAA) COVID-19: Guidance for SMPs Europe, audit

N a t i o n a l

Financial Accounting Standards Board (FASB) FASB Response to COVID-19 US
American Institute of Certified Public Accountants (AICPA) Coronavirus (COVID-19) Resource Center US
Center for Audit Quality (CAQ) COVID-19 – Auditing Profession Resources US, audit
Accounting Standards Board of Canada (AcSB) AcSB COVID-19 Resources Canada, series of articles on individual accounting problems in the context of COVID-19
Chartered Professional Accountants Canada (CPA) COVID-19: Resources related to reporting and audit Canada
South African Institute of Chartered Accountants (SAICA)
COVID-19 Hub South Africa, series of educational material on individual accounting problems in the context of COVID-19
Financial Reporting Council (FRC), UK FRC COVID-19 Response UK
Institute of Chartered Accountants in England and Wales (ICAEW) Coronavirus UK
Institute of Chartered Accountants of Scotland (ICAS) Accounts, Audit and Corporate Reporting UK
Deloitte UK
Regulatory, monetary and fiscal policy initiatives in response to the COVID-19 pandemic UK and pan-EU
Institute of Chartered Accountants of India (ICAI) COVID-19 Accounting Guidance of ICAI and IASB India
Hong Kong Institute of Certified Public Accountants (HKICPA) COVID-19 – CPA Information Centre Hong Kong
Australian Accounting Standards Board (AASB) Coronavirus (COVID-19) Guidance Australia
New Zealand External Reporting Board (XRB) Implications for Financial Reporting New Zealand
Chartered Accountants Australia and New Zealand (CAANZ) COVID-19 links Australia and New Zealand
Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) Accounting implications of the impact of COVID-19 pandemic Islamic accounting

If you are aware of additional collections that would be of interest to an international financial reporting audience, please feel free to contact us.

EC review of the NFRD postponed by three months

27 May 2020

In February 2020, the European Commission (EC) launched an initiative to review the European Non-Financial Reporting Directive (NFRD). The COVID-19 pandemic has now led to changes in the timetable.

The review was originally scheduled to be completed in the fourth quarter of 2020. An updated work programme released today shows that this date has been moved to the first quarter of 2021.

Please see this communication on the EC website (entry number four under item 2).

EFRAG draft comment letter on the IASB's discussion paper on goodwill and impairment

30 May 2020

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB discussion paper DP/2020/1 'Business Combinations — Disclosures, Goodwill and Impairment'.

The IASB's project on goodwill and impairment aims at improving the information companies provide to investors, at a reasonable cost, about the businesses those companies buy and would help to hold management to account for its decisions to acquire those businesses.

In its draft comment letter on the discussion paper published in March 2020, EFRAG

  • supports the objective to explore whether companies can, at a reasonable cost, provide investors with more useful information about the acquisitions companies make;
  • notes some practical issues to consider in relation to disclosures about the strategic rationale, management’s objectives for an acquisition, and synergies; asks whether this information should be provided in the management commentary rather than the financial statements; and questions whether the benefits of some of the disclosures would outweigh the costs;
  • suggests that the guidance on goodwill allocation to cash generating units is possibly amended to improve how the impairment test for cash-generating units containing goodwill is applied in practice;
  • does not offer a view yet on whether amortisation of goodwill should not be reintroduced;
  • appreciates the attempts to simplify the impairment test, but has reservations about introducing an indicator-only approach;
  • supports the proposal to remove the restriction that prohibits companies from including cash flows arising from a future uncommitted restructuring or from enhancing the asset’s performance as well as to remove the requirement to use pre-tax inputs and pre-tax discount rates to calculate value in use;
  • does not assess that there would be any benefits of presenting the amount of total equity excluding goodwill in the statement of the financial position; and
  • would recommend that the issue on whether some intangible assets could be included in goodwill should be considered in a second phase of the project.

Comments on EFRAG's draft comment letter are requested by 30 November 2020. For more information, see the press release and the draft comment letter on the EFRAG's website.

EFRAG draft comment letter on rent concessions ED

01 May 2020

The European Financial Reporting Advisory Group (EFRAG) has published a draft comment letter on the IASB exposure draft ED/2020/2 'Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16)'.

In the draft comment letter, EFRAG agrees with the proposals in the exposure draft published last Friday that would provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. However, EFRAG would support expanding the scope of the amendment to include all rent concessions granted during 2020 and not just payments due in 2020.

EFRAG has also published a preparatory draft of an endorsement advice of the amendment. Doing so before issuance of the final amendment by the IASB is intended to allow for the finalisation of the endorsement advice as soon as possible after the IASB has issued the amendment to IFRS 16. The preparatory draft of the endorsement advice is based on the assumption that the final amendment will not be substantially different from the proposals in the exposure draft.

Comments on EFRAG's draft comment letter are requested by 7 May 2020, comments the preparatory draft of an endorsement advice by 20 May 2020. For more information, see the press release, the draft comment letter and the preparatory draft of an endorsement advice on the EFRAG website.

EFRAG is also offering a public outreach event on the exposure draft on Thursday 7 May 2020. More information is available here.

EFRAG draft comment letter on deferral of IAS 1 effective date ED

08 May 2020

The European Financial Reporting Advisory Group (EFRAG) has published a draft comment letter on the IASB exposure draft ED/2020/3 '3 Classification of Liabilities — Deferral of Effective Date (Proposed amendment to IAS 1)'.

In the draft comment letter, EFRAG agrees with the proposals in the exposure draft published on 4 May 2020 that would defer the effective date of the January 2020 amendments to IAS 1 by one year.

EFRAG acknowledges that there may be related operational consequences of the amendments, but opines that the advantages of a deferral during this time of significant disruption due to COVID-19 would outweigh the disadvantages, as earlier application of the amendments will continue to be permitted. ​

Comments on EFRAG's draft comment letter are requested by 25 May 2020. For more information, see the press release and the draft comment letter on the EFRAG website.

EFRAG issues annual review for 2019

19 May 2020

The European Financial Reporting Advisory Group (EFRAG) has published its 2019 annual review.

This publication includes reports from the EFRAG President Jean-Paul Gauzès and the TEG Chairwoman Chiara Del Prete. It also features EFRAG's continued work on IFRS 17 Insurance Contracts; the work on accounting for long-term equity instruments; research projects on intangibles and crypto-assets and liabilities.

The annual review is available on the EFRAG website.

EFRAG publishes April 2020 issue of 'EFRAG Update'

04 May 2020

The European Financial Reporting Advisory Group (EFRAG) has published an 'EFRAG Update' summarising public technical discussions held and decisions made during April 2020.

The update reports on the EFRAG Board webcast meeting on 21 April, the EFRAG webcast meetings on 6, 8 and 29 April, the EFRAG TEG webcast meeting on 16 April and the meeting of the European Lab Steering Group on 22 April.

The update also lists EFRAG publications issued in April:

Please click to download the April EFRAG Update from the EFRAG website.

Correction list for hyphenation

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